MinFin eyes $5bn inflows by May 15 to strengthen forex reserves

ISLAMABAD: Ministry of Finance (MinFin) is eyeing $5 billion foreign inflows in to the country by May 15, 2014 to strengthen it’s foreign exchange reserves and rupee dollar parity, a senior official at Ministry informed on Thursday.These inflows would include budgetary support from World Bank (WB) and Asian Development Bank (ADB) and Foreign Direct Investment (FDI) in the shape of proceeds of auction of 3G and 4G spectrum and arrears of Coalition Support Fund (CSF), official added.Fiscal operations: Giving details of the fiscal operations till March 31, for the first nine month of the ongoing fiscal year 2013-14, the official informed government has managed to bring budget deficit to 3.1 percent of the GDP or 815 billion as compared with 4.6 percent of the GDP deficit in the same period of last fiscal year 2012-13.The government is embarked upon building foreign exchange reserves to $20 billion by the end of it’s tenure and by the end of ongoing fiscal year 2013-14, these are to be jacked up further $5 billion, the official explained.3G Auction: According to the firmed up estimates of the auction of 3G and 4G spectrum, that is scheduled on April 23 is to generate around $3 billion for Pakistan, said the sources adding 50 percent of this amount would be made available to Pakistan soon after the bidding by the successful bidders. The 50 percent of the bid amount is to constitute around $1.5 billion. This would help jack up foreign exchange reserves to further comfortable level.WB: The official informed Executive Board meeting of the WB is scheduled on April 23-24 at Washington that is expected to approve $1 billion budgetary support. This approval would enable Pakistan to immediately receive entire amount in State Bank of Pakistan’s account.ADB: Similarly the Executive Board of the ADB is also expected to approve $500 million budgetary support for Pakistan and this approval would also make this money available to Pakistan immediately. CSF: The official informed Pakistan is also expecting $350 million arrears of CSF from United States. Foreign inflows from some other sources are in the pipeline and the authorities are expecting $5 billion byMay 15, 2014. Tax: According to the provisional figures federal tax collection in the first three quarters (July-March 2014) amounted to Rs 1.565 trillion and non-tax revenue collection at Rs 790 billion against the total expenditures of Rs 2.405 trillion. Federal government has transferred Rs 1 trillion to all four provincial government’s as revenue share under National Finance Commission Award.